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For Immediate Release
July 11, 2008
Contact:
Rich Timmons: 202/628-4500
Keith Hartwell: 202/638-7790 (Cell: 202/257-7444)
Short Line Railroads Praise Braley/Loebsack Bill
Iowa?s short line railroads and the national short line railroad industry are praising the introduction of federal legislation that would facilitate the rebuilding of the state?s railroad infrastructure. The legislation introduced by Congressman Bruce Braley (D-1st/IA) and Congressman Loebsack (D-2nd/IA) would significantly improve the terms of federal loans used to repair track structures in the disaster area. The loans are currently authorized under the Railroad Rehabilitation and Improvement Program (RRIF) and the Braley/Loebsack amendments would lower interest rates to 1 percent, extend the loan term to 35 years and ease collateral requirements.
All railroads, regardless of their size would be eligible to apply for the restructured loans.
This is a creative solution to a very expensive problem and I commend the Congressmen for pursuing these changes,? said Iowa Northern Railroad (INRR) President Daniel Sabin. INRR estimates its flood-related damages at $6.4 million including $5 million to replace its railroad bridge in Waterloo. ?The money needed to rebuild our railroad infrastructure will have to be pieced together from numerous sources, and these changes will allow the RRIF loan program to be an important part of that puzzle,? said Sabin.
While there is considerable damage to Iowa?s railroad infrastructure three short line railroads have sustained substantial bridge damage: Iowa Northern?s bridge at Waterloo estimated at $5 million; Iowa, Chicago & Eastern?s Turkey River Bridge in Clayton County estimated at $4 million; Cedar Rapids & Iowa City?s bridge in Cedar Rapids estimated at $6 million.
Richard Timmons, President of the American Short Line and Regional Railroad Association (ASLRRA) which represents the nation?s 500 short line railroads, indicated that Congressman Braley was on this case as the disaster was occurring. ?Congressman Braley called us almost immediately to explore solutions,? said Timmons. ?The RRIF loan program is governed by a complex set of rules and regulations and I was very impressed with Congressman Braley?s determination to make the modifications necessary to maximize its benefits,? said Timmons.
Over one third of Iowa?s total railroad network is operated by short line railroads. It ranks number 12 among all the 50 states in total short line miles. The short lines operate in areas no longer served by the large Class I railroads and are critical to keeping thousands of individual shippers connected to the national railroad network. ?In the last three years we have invested over $3 million in equipment and infrastructure in order to ship and receive by rail,? said William Manweiler, Dunkerton Co-op, Dunkerton, IA. ?Keeping Dunkerton Co-op connected to the national railroad network is vital to our cooperative?s success. Due to the railroad bridge failure in Waterloo, the detour mileage for our grain to move from Dunkerton, to Cedar Rapids processors alone is approximately 180 additional route miles. We really appreciate Congressman Braley taking this initiative. It is a vital part of our ability to ship or receive commodities in an efficient and cost effective manner,? said Manweiler | 
